For more than 2 decades, Iel has been the undisputed leader of the data ceer processor market. Iel’s Xeon processors powered the majority of servers, but AMD’s had a single-digit market share just 7 or 8 years ago, but that has changed dramatically.
Iel’s Xeon processors still power most servers, but the most expensive machines now use AMD’s EPYC processors; That’s why, as SemiAnalysis reports, AMD’s data ceer business unit now has more sales than Iel’s data ceer and AI business group.
AMD’s data ceer revenue reached $3.549 billion in the third quarter, but Iel’s data ceer and artificial ielligence group revenue reached $3.3 billion in the third quarter of 2024. Just 2 years ago, this division of Iel was making $5-6 billion per quarter. But as AMD’s EPYC processors have gained competitive advaages over Iel’s Xeon processors, Iel has been forced to sell its server chips at significa discous, which has cut io the company’s revenue and margins.
Iel’s 128-core Xeon 6980P Granite Rapids processor costs $17,800, making it the company’s most expensive ery-level CPU. In corast, AMD’s most expensive 96-core EPYC 6979P processor costs around $11,805. If demand for Iel’s Xeon 6900-series processors remains strong and the company can supply them in sufficie volume, Iel’s data ceer revenue will likely get back on track and outpace AMD’s data ceer sales, but Iel still needs to build its Granite Rapids products. to increase
Nvidia has more revenue than Iel and AMD in data ceer and networking chips
Both Iel and AMD currely earn about $3.5 billion to $3.5 billion per quarter from data ceer processor sales, but Nvidia makes more money from its data ceer graphics and networking chips, which are needed to coordinate AI processors in data ceers. . In fact, sales of Nvidia’s network products reached $3.668 billion in the second quarter of fiscal 2025.
Meanwhile, sales of computational graphics processors reached $22.604 billion in the second quarter of fiscal 2025, far exceeding Iel and AMD data ceer hardware sales combined. In total, Nvidia sold nearly $42 billion in AI and HPC GPUs in the first half of this year, and the company is likely to sell even more data ceer processors in the second half of the year.
